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Petrel Resources “fully funded” for offshore Ireland work

Shares, which have gained around 21% so far this week, were relatively flat on the news at 6.4p.

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The company is ramping up its efforts on the Atlantic offshore Ireland

After “a year of transition” in 2015, Petrel Resources PLC (LON:PET) is ramping up its efforts on the Atlantic offshore Ireland, according to Northland Capital.

The company bid on three areas in the Porcupine basin earlier this month and was awarded two new licences.

“At its new options; 16/24 and 16/2, Petrel has commenced its agreed work programme, that is fully funded, to identify potential targets for further work, following this the company will look to farm out the projects for the more costly exploration phase,” the broker said.

Speaking to Proactive Investors, David Horgan, a director at the company, said the farm-out market is depressed, but “certain hotspots” are seeing a lot of interest and one of these is the Porucpine Basin, where discussions with potential partners “have been quite positive”.

Meanwhile, at the company’s 15% interest in FEL 3/14, joint venture partner Woodside is currently shooting a 3D seismic programme that “could lead to at least one well being drilled at no cost to Petrel,” broker Northland said.

Petrel reported full-year results on Friday that showed adjusted losses before tax in 2015 reduced to €227,234 from €430,517 the year before.  

On a day when the UK decided to leave the EU, Petrel said: “In a world of significant political and economic uncertainty it is good to have some positive news to report.”

After the licence awards, the company had net cash of €795,647 at the end of the year, and chairman John Teeling said “we are financed for the future”.

Shares, which have gained around 21% so far this week, were relatively flat on the news at 6.4p.

Quick facts: Petrel Resources PLC

Price: 5 GBX

AIM:PET
Market: AIM
Market Cap: £7.85 m
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